Crypto Liquidations Top $2 Billion as Bitcoin Continues Slide, Ethereum Hits 4-Month Low
The cryptocurrency market experienced a significant crash on Tuesday, with Bitcoin dropping below $100,000 for the first time in six months, reaching as low as $99,075 before slightly recovering to $101,167—a 5% daily drop. Ethereum also plummeted to $3,097, a four-month low, representing a 9% daily fall, outpacing other top cryptocurrencies. Total crypto market liquidations exceeded $2 billion in 24 hours, with over $1.63 billion tied to long positions. Ethereum led in liquidation value at $655 million, followed by Bitcoin at $614 million. Analysts suggest the decline was fueled by over-leveraged trading, macroeconomic uncertainties, and broader market anxieties. Despite this, some experts highlight potential buying opportunities during this price reset if Bitcoin stabilizes above $100-105K.
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Massive Downturn in Cryptocurrency Market
Tuesday's crypto market experienced a drastic downturn, worsening as the day progressed. Bitcoin nearly reached the $99,000 mark, while Ethereum plummeted to a four-month low, and daily liquidations surpassed $2 billion. Notably, Bitcoin dropped below $100,000 for the first time in six months, eventually rebounding temporarily. According to CoinGecko, Bitcoin hit a low of $99,075, while CoinMarketCap recorded levels just below the $99,000 threshold.
Bitcoin's Volatile Movements
Bitcoin recently traded at $101,167, indicating a daily decline of approximately 5%. Over the past week, the cryptocurrency has dropped by more than 10%, and now sits nearly 20% below its all-time high of $126,000 achieved in early October. This marks a challenging period for the leading cryptocurrency in the market.
Ethereum's Record Decline
Ethereum also suffered significantly, falling from a 24-hour high of $3,649 to as low as $3,097—a level not seen since July. At a current price of $3,260, Ethereum has lost more than 9% in value over the last day, outpacing other top 10 cryptocurrencies by market capitalization. Other altcoins like XRP, Solana, and BNB also saw considerable daily losses, though none as severe as Ethereum's.
Caught in Liquidations
In total, over $2.02 billion worth of crypto positions have been liquidated in the past 24 hours, per data from CoinGlass. Approximately $1.63 billion of this amount was tied to long positions, suggesting that many traders were betting on price increases. Maja Vujinovic, co-founder and CEO of FG Nexus, commented, "Too many traders were using borrowed money to bet on prices going up." She added, "The next few days are critical: If Bitcoin stays above $100k-$105K, it might be a healthy reset, otherwise a deeper drop could occur."
Ethereum Tops Liquidation Figures
Ethereum's massive price drop propelled it to the top of the liquidations list, accounting for $655 million worth of liquidations compared to Bitcoin's $614 million. Earlier in the day, Bitcoin had led daily liquidations after falling below $100,000. Despite the staggering $2 billion in liquidations, this figure remains below the record $19 billion seen in October, although some traders have grown more conservative in the aftermath of that event.
Wider Market Implications
Mike Maloney, CEO of Incyt, likened the events to "an echo of Black Friday (October 10)," noting that although the drop was reversed quickly, investor anxiety persists. Tuesday's correction coincided with declines across stock market indices, as both the Nasdaq and S&P 500 ended the day lower due to tech stock sell-offs and broader macroeconomic uncertainties.
Broader Market Concerns
Other factors contributing to recent cryptocurrency losses include Trump's ongoing trade conflicts, such as recent threats toward China, which had preceded last month’s record-setting liquidations. Additionally, concerns over liquidity problems and rising pessimism tied to potential U.S. interest rate cuts in 2025 further dampened market sentiment.